Climate change regulation: Implications for business executives

Purpose – The purpose of this paper is to provide an overarching conceptual decision model that delineates the major issues and decisions associated with carbon regulations that will allow executives to better understand the potential regulatory schemes and implications that may be imposed in the near future.Design/methodology/approach – The authors use the extant literature as the foundation to develop a conceptual model of the decisions pertaining to climate change regulation that face business executives today.Findings – This paper suggests four major categories of issues that must be addressed in any climate change regulatory scheme. These include: “scope” – will carbon emission management systems be global or regional; “who pays” – will the consumer or will the supply chain be responsible for the cost of their emissions; “market or compliance‐based mechanisms” – will the CO2 emissions system be market‐based or a compliance‐based regulatory system; and “criteria” – how can credence of the remedy be es...

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